1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 C D Accounting Culminting Activity: Competing the Accounting Cycle for a Service Based Business 17 18 19 20 21 22 23 24 A You may work in a group with up to two people to form a a service business and be complete the accounting cycle for this business. Your fiscal period will be for one month ended December 31, 20-. Follow the steps provided while being aware of due dates. Templates have been created for you and each tab will represent a different stage in the accounting cycle. Step Step 1: Step 2: Step 3: Step 4: Alert: Step 5: Step 6: Step 7: Step 8: Step 9: Step 10: B Step 11: Step 12: Task Choose a Company Name:__ your partner will be the owners of the business. You and Using the Chart of Accounts (located on excel tab Chart of Accounts create beginning balances for at least three asset accounts, one liability and capital. I recommened giving all of the assets and liabilities beginning balances as this will make the assignment a little easier. Ensure you balance A=L+OEIIDisplay these under the third tab beginning balances. Using the Chart of Accounts (located on excel tab Chart of Accounts) create 10 transactions (including the opening entry). Each account must be used at least once; creating opening balances for assets and liabilities would be counted as a transaction. Include source documents where needed. Journalize Your Transactions including the opening entry; Tab General Journal You are required to pay back the monthly portion of the bank loan with interest. Research the terms of a typical bank loan and the interest rate being charged (Most likely, Prime +4%). Create a transaction for both the loan repayment, if not done so, and interest charge, and journalize it on the last day of the month. (don't forget the source document). Post your transactions to the ledger (add lines if necessary to the account) Tab General Ledger Prepare a trial balance Tab Trial Balance Create three adjusting entires. Place these in the tab named Transactions Journalize these entries (Genereal Journal Tab)and post them to the ledger (Genereal Ledger Tab) ADD ANY NEW ACCOUNTS TO YOUR CHART OF ACCOUNTS prepare an adjusted trial balance TAB adjusted Trial Balance Create a classified balance sheet AND Income statement TAB Classified Balance Sheet & Income Statement Journalize and post your closing entries Tab General Journal & General Ledger Prepare a post-closing trial balance TAB Post Closing Trial Balance Note: All of your financial statements should be on ONE page only; use the VIEW> PAGE VIEW function to ensure it fits one page Due Date Total 10-Mar 10-Mar 18-Apr 3-May 4-May 5-May 12-May 9-Jun 9-Jun June 16 June 16 June 16 Mark /5 /22 /5 /10 /5 /12 /5 /20 /16 /5 /105 E 5 10 5 12 5 20 16 5 78 LL F G H I 15 J You may ask someone who owns a service company to help you. If you know someone who sells products, confirm with me that it is ok. The business began with the following balances in their accounts K provided a service to a customer for $200 cash sales slip #1 Ensure that one of the Transactions includes a Fixed Asset. Note: Go over all worksheets Temporary new date: May 10th L M